Shanghai Pudong Development Bank Co., Ltd.

RATING

SECTOR

Financial Services

 

WEBSITE

CONTACT

12 Zhongshan Dongyi Road
200002 Shanghai
China

Tel: 86-21-6161-8888
Fax: 86-21-63232036

STOCK EXCHANGE

LISTING

  • #15 on The Banker’s list of Top 500 Banking Brands 2021
  • #65 on the Forbes’ Global 2000 2020
  • #220 on the Fortune’s Global 500
  • The Banker’s Top 1000 World Banks (#20 in terms of tier 1 capital, #7 among Chinese banks)

EMPLOYEES

52,832

 

CHIEF SUSTAINABILITY OFFICER

No CSO or equivilant found.

 

AWARDS

  • Best Green Finance Achievement Award 2020 by the China Banking Association
  • Best Contribution Award for Targeted Poverty Alleviation 2019
  • Best Outlet Award for Special CSR Contribution 2019
  • Best Green Finance Award 2018
  • Excellent Charity Project of the Year

CONTENT SOURCE

FURTHER READING

Report created by Youmna Abdallah

 

Shanghai Pudong Development Bank Co., Ltd.

SECTIONS :  Sustainability  •  Targets     Evaluation   •  Key Points  •  Overview

Company Activity

Shanghai Pudong Development Bank Co. Ltd (SPDB) is a national joint-stock commercial bank headquartered in Shanghai. It was incorporated in 1993, with the approval of the People’s Bank of China on August 28, 1992. It was listed on the Shanghai Stock Exchange in 1999. Its current registered capital is RMB 19.653 billion. By the end of 2016, its total assets amounted to RMB 5.86 trillion, and its net profit belonging to parent company shareholders was RMB 53.099 billion.

SPDB has built up a nationwide commercial bank operation and service network consisting of 41 branches and 52,832 employees. In recent years, SPD Bank has been accelerating its globalization and comprehensive business development. By opening branches in Hong Kong and Singapore, an office in London and SPDB International, it has made substantial progress to internationalize its operations.

The establishment of SPD Rural Banks, SPDB Financial Leasing Co., Ltd. and SPD Silicon Valley Bank, including its successful acquisition of Shanghai International Trust Co., Ltd., were the milestones on the Bank’s journey to becoming a financial group with comprehensive business.

Company Sustainability Activity

SPDB is committed to corporate citizenship and fulfilling its social responsibility. Over the years, SPDB received several awards granted by the China Banking Association, such as Excellent Charity Project of the Year, Best CSR Green Finance of the Year and Best Outlet for Special CSR Contribution of the Year.

Highlights

  • SPD Bank’s Inaugural International Green Bond is the first Low Carbon City Themed Green Bond issued by a Chinese commercial bank. The Green Bond has a strong focus to support clean transportation and green buildings within Tier 1 and Tier 2 cities in China, facilitating much-needed green and sustainable development alongside rapid urbanization.

Targets

The company does not disclose any sustainability-related targets at the moment.

Progress

As of 24th October 2020, the proceeds of the 2019 SPD Bank USD 300 million Green Bond have been fully allocated. Allocation information by type of project and sector are as follows:

  • Proceeds By Allocation Status: 100%
  • Proceeds By Eligible Green Asset Category:
    • 45% Green Building
    • 55% Clean Transportation

The expected environmental benefits of the Eligible Green Assets financed are aggregated by category and reported as below: 

  • Clean Transportation: 
    • 7 Electrical Railway Projects (201.427 km total length of tracks built,  3.4 million expected total daily passengers and  6,859,277,830 kg/year estimated total greenhouse gas emission avoided.)
    • 1 Electrical Vehicle (Purchased 1300 times) 
  • Green Building
    • 3 Projects (All three buildings have obtained Chinese Green Building Evaluation Label – 3 Stars, with 50-53% building energy efficiency ratio and a 966,800 m2 total area of the certified green building)

Certificates

UN Sustainable Development Goals

UN SDGs Compliance

The Impakter Index team aligns current company-wide sustainability initiatives with the UN Sustainable Development Goals in the following section.

SDG 11: Sustainable Cities and Communities

SDG 13: Climate Action

  • SDBP developed 7 Electrical Railway Projects and 1 Electrical Vehicle, resulting in an estimated 6,859,277,830 kg/year total greenhouse gas emission avoided.

Evaluation

Whilst SPDB’s development of Green Building and Clean Transportation projects are noteworthy, the company’s efforts towards sustainability are limited.

The Group has shown a certain level of commitment through their Inaugural International Green Bond, being the first Low Carbon City Themed Green Bond issued by a Chinese commercial bank. The Chinese Green Building Evaluation Label they received for their Green Building projects is notable.

However, the company would benefit from implementing additional social and environmental policies and explicitly align with the UN Sustainable Development Goals, in order to achieve higher rankings.

In addition to its minimal sustainability efforts, the bank has invested $37.875 B in the fossil fuel industry since the adoption of the Paris Agreement. Even more so, SPDB has been increasing its investments steadily from $4.955 B in 2017 to $12.165 B in 2020. 

For these reasons, the company has been rated a D.

Analyst Outlook: Negative

SPDB has proven to be committed towards sustainable development through their co-financing of The International Bank for Reconstruction and Development (IBRD) which supports and plans low-carbon initiatives and building energy efficiency programs, both at the national and municipal levels in China.

However, the Impakter Index cannot ignore SPDB’s increasing involvement in the fossil fuel industry. Unless the bank begins to divest from the fossil fuel industry, it will not receive a higher rating.

Key Points

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